Download PDF

1. Company Snapshot

1.a. Company Description

Traeger, Inc., together with its subsidiaries, designs, sources, sells, and supports wood pellet fueled barbeque grills for retailers, distributors, and direct to consumers in the United States.Its wood pellet grills are internet of things devices that allow owners to program, monitor, and control their grill through its Traeger app.The company also produces a library of digital content, including instructional recipes and videos that demonstrate tips, tricks, and cooking techniques that empower Traeger owners to progress their cooking skills; and short- and long-form branded content highlighting stories, community members, and lifestyle content from the Traegerhood.


In addition, it provides wood pellets that are used to fire the grills; rubs and sauces, seasonings, and marinades; covers, drip trays, bucket liners, and shelves; tools to aid in meal prep, cooking, and cleanup, including pellet storage systems, cleaning solutions, barbecue tools, and MEATER smart thermometer; replacement parts; and apparel and merchandise.The company was incorporated in 2017 and is headquartered in Salt Lake City, Utah.

Show Full description

1.b. Last Insights on COOK

Recent negative drivers for Traeger, Inc. include declining consumables and accessories sales, offsetting the 3.7% revenue growth driven by grill sales. Although profitability metrics improved, with EBITDA nearly tripling and adjusted net losses narrowing, operating cash flow saw a slight decline. The launch of the all-new Woodridge Pellet Grill Series, celebrating 40 years of innovation, may not be enough to offset current challenges. Despite price cuts, the company's struggles to balance revenue growth with profitability may continue to weigh on its performance.

1.c. Company Highlights

2. Traeger's Q3 2025 Earnings: A Mixed Bag

Traeger's third-quarter 2025 revenues increased 3% year-over-year to $125 million, driven by double-digit gains in the consumables business and a modest increase in grill revenues. Adjusted EBITDA of $14 million was up 12% over the prior year. However, EPS came out at -$0.17, missing estimates of -$0.03. Gross margin is expected to be between 40.5% and 41.5% for the full year.

Publication Date: Nov -25

📋 Highlights
  • Revenue Growth & EBITDA Performance:: Q3 sales rose 3% to $125M, with adjusted EBITDA up 12% to $14M driven by higher grill ASPs and consumables growth.
  • Project Gravity Cost Savings:: $30M in annualized savings from Phase 1 and an additional $20M target from Phase 2 by FY27, targeting $50M total run-rate savings.
  • Tariff Mitigation Progress:: 80% offset of $60M unmitigated tariff exposure in FY25 through pricing, supply chain diversification, and production shifts.
  • Full-Year Guidance:: Revenue expected between $540M-$555M (-8% to -11% YoY), with gross margin of 40.5%-41.5% and adjusted EBITDA of $66M-$73M.

Operational Progress

The company has made significant progress on Project Gravity, its comprehensive strategic initiative to drive operational efficiency and long-term profitability. Phase 1 actions, including headcount reductions and the integration of MEATER into headquarters, are expected to deliver $30 million in run-rate cost savings. An incremental cost savings target tied to Gravity Phase 2 of $20 million once fully implemented has been announced.

Revenue and Pricing Strategy

Traeger's grill revenues increased 2% in the third quarter, primarily driven by an increase in average selling prices tied to the pricing increase implemented earlier this year. The company is expecting a revenue loss of approximately $60 million from its distribution strategy plans but believes there will be recapture of this revenue in other channels. As Jeremy Andrus mentioned, "the sub-$1,000 price point grill has continued to outperform, and we believe this has expanded the addressable audience for Traeger."

Valuation and Outlook

With a P/S Ratio of 0.18 and an EV/EBITDA of -10.0, the market appears to be pricing in significant challenges for Traeger. Analysts estimate next year's revenue growth at -2.5%. The company's decision to redirect Trager.com traffic to retail partners' websites is expected to drive higher margins and a better consumer experience. However, the impact of higher interest rates on consumer discretionary purchases and housing relocations remains a concern.

Market Positioning

The grill market is slightly down due to higher price points, and Traeger's share is flat. Despite robust consumer engagement, the company has not yet seen data suggesting the pandemic buyer is rebuying. Traeger will continue to invest in accessories and adjacent categories, with a focus on its core wood pellet grill experience.

3. NewsRoom

Card image cap

Traeger Receives NYSE Continued Listing Standard Notice

Nov -24

Source: businesswire.com

Card image cap

Traeger (COOK) Reports Q3 Earnings: What Key Metrics Have to Say

Nov -06

Source: zacks.com

Card image cap

Traeger, Inc. (COOK) Q3 2025 Earnings Call Transcript

Nov -06

Source: seekingalpha.com

Card image cap

Traeger (COOK) Reports Q3 Loss, Beats Revenue Estimates

Nov -06

Source: zacks.com

Card image cap

Traeger Announces Reporting Date for Third Quarter Fiscal 2025 Financial Results

Oct -22

Source: businesswire.com

Card image cap

Traeger Can Still Cook

Sep -27

Source: seekingalpha.com

Card image cap

Traeger, Inc. (COOK) Q2 2025 Earnings Call Transcript

Aug -07

Source: seekingalpha.com

Card image cap

Compared to Estimates, Traeger (COOK) Q2 Earnings: A Look at Key Metrics

Aug -07

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.18%)

6. Segments

Grills

Expected Growth: 9%

Traeger's 9% growth driven by increasing demand for outdoor cooking, expanding distribution channels, and innovative product offerings. Strong brand recognition, loyalty, and customer retention also contribute to growth. Additionally, the rise of the 'grill-at-home' trend, fueled by social media and celebrity endorsements, has increased consumer interest in premium grilling products like Traeger's.

Accessories

Expected Growth: 7%

Traeger's accessories segment growth is driven by increasing adoption of pellet grills, expanding product offerings, and rising consumer interest in outdoor cooking. Strong brand loyalty and repeat business from existing customers also contribute to growth. Additionally, strategic partnerships and e-commerce platform expansion enhance accessibility and convenience, further fueling growth.

Consumables

Expected Growth: 8%

Traeger's consumables segment growth is driven by increasing adoption of pellet grills, expanding product offerings, and rising demand for wood-fired cooking. Strong brand loyalty and repeat business from existing customers also contribute to growth. Additionally, the company's strategic partnerships and investments in e-commerce and digital marketing enhance customer engagement and drive sales.

7. Detailed Products

Traeger Grills

Traeger's flagship product, offering a range of pellet grills that allow for precise temperature control and smoke flavor infusion.

Timberline Series

High-end pellet grills with advanced features like WiFIRE technology, allowing for remote temperature control and monitoring.

Pro Series

Mid-range pellet grills offering a balance of features and affordability, perfect for backyard cooks and small gatherings.

Tailgater Series

Portable and compact pellet grills designed for on-the-go cooking, perfect for camping, tailgating, or small outdoor events.

Rub and Seasoning Blends

Traeger's line of artisanal rubs and seasonings, crafted to enhance the flavor of your grilled creations.

Accessories and Parts

A range of accessories and replacement parts for Traeger grills, including grill covers, utensils, and more.

8. Traeger, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Traeger's products are highly differentiated, but there are some substitutes available in the market, such as gas grills and charcoal grills.

Bargaining Power Of Customers

Traeger's customers have limited bargaining power due to the company's strong brand reputation and limited availability of substitutes.

Bargaining Power Of Suppliers

Traeger's suppliers have some bargaining power due to the company's dependence on them for high-quality components, but the company's strong relationships with suppliers mitigate this risk.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the pellet grill market, including the need for significant capital investment and technological expertise.

Intensity Of Rivalry

The intensity of rivalry in the pellet grill market is high due to the presence of several established competitors, including Green Mountain Grills and Pit Barrel Cooker.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 59.59%
Debt Cost 6.66%
Equity Weight 40.41%
Equity Cost 9.30%
WACC 7.73%
Leverage 147.44%

11. Quality Control: Traeger, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Lovesac

A-Score: 3.9/10

Value: 8.1

Growth: 7.4

Quality: 4.3

Yield: 0.0

Momentum: 1.5

Volatility: 2.3

1-Year Total Return ->

View Full Report
Stock-Card
Purple Innovation

A-Score: 3.9/10

Value: 10.0

Growth: 2.6

Quality: 4.6

Yield: 0.0

Momentum: 5.0

Volatility: 1.3

1-Year Total Return ->

View Full Report
Stock-Card
Aterian

A-Score: 3.8/10

Value: 9.8

Growth: 6.9

Quality: 4.8

Yield: 0.0

Momentum: 0.0

Volatility: 1.3

1-Year Total Return ->

View Full Report
Stock-Card
Sleep Number

A-Score: 2.7/10

Value: 8.8

Growth: 2.2

Quality: 3.9

Yield: 0.0

Momentum: 0.5

Volatility: 1.0

1-Year Total Return ->

View Full Report
Stock-Card
Traeger

A-Score: 2.7/10

Value: 6.9

Growth: 4.8

Quality: 2.0

Yield: 0.0

Momentum: 0.5

Volatility: 1.7

1-Year Total Return ->

View Full Report
Stock-Card
iRobot

A-Score: 2.5/10

Value: 9.8

Growth: 1.0

Quality: 4.0

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

0.82$

Current Price

0.82$

Potential

-0.00%

Expected Cash-Flows